This week, the domestic Shandong propane market experienced a volatile decline. According to the commodity market analysis system of Business Society, the average price of propane in Shandong Province was 5545 yuan/ton on December 11th, and 5520 yuan/ton on December 15th. The weekly decline was 0.45%, a decrease of 0.89% compared to the same period last year.

As of December 15th, the mainstream prices of propane in different regions of China are as follows:

Region/ December 15th

East China region/ 5250-5400 yuan/ton

North China region/ 5400-5500 yuan/ton

Shandong region/ 5300-5400 yuan/ton

Northeast region/ 5350-5500 yuan/ton

This week (12.11-12.15), the propane market in Shandong experienced a weak downward trend and a sluggish market atmosphere. Due to the recent sluggish trend of propane, upstream inventory pressure has increased, leading to price reductions and inventory clearance. In the atmosphere of downstream buying up but not falling, demand growth is limited, and prices continue to decline.

Saudi Aramco announced its CP in November 2023, with propane at $610 per ton, an increase of $10 per ton compared to the previous month; Butane costs $620 per ton, an increase of $5 per ton compared to the previous month.

Overall, the northern market is affected by heavy snowfall, with some areas experiencing poor transportation, further suppressing demand. It is expected that the possibility of a downturn in the propane market consolidation will increase.

The price of ortho xylene is temporarily stable this week

According to the commodity market analysis system of Shengyishe, as of December 14th, the price of ortho xylene was 7500 yuan/ton, which is temporarily stable compared to the price of ortho xylene on December 8th last weekend. The price of raw material mixed xylene rebounded and adjusted, while the cost of ortho xylene stopped falling; The price of phthalic anhydride has stopped falling and stabilized, while the plasticizer market has fluctuated and stabilized. Downstream demand remains weak, and the price of ortho xylene has temporarily stabilized this week.

Raw material mixed xylene rebound adjustment

According to the market analysis system of mixed xylene products in Shengyishe, as of December 14th, the price of mixed xylene was 6920 yuan/ton, an increase of 0.29% compared to the price of mixed xylene on December 8th last weekend, which was 6900 yuan/ton. In December, the price of naphtha stopped falling and rebounded. The international market saw an increase in the price of mixed xylene, which led to an increase in the cost of raw materials for ortho xylene. As a result, the upward momentum for ortho xylene increased.

Downstream phthalic anhydride market has stopped falling and stabilized

According to the Commodity Market Analysis System of Business Society, as of December 14th, the quotation for ortho phthalic anhydride was 7400 yuan/ton, which is temporarily stable compared to the price of 7400 yuan/ton for phthalic anhydride on December 8th last weekend. In December, the plasticizer market first fell and then rose, and the demand for phthalic anhydride continued to grow insufficiently. The operating rate of phthalic anhydride remained stable, the price of phthalic anhydride stabilized, and the demand for ortho benzene was insufficient.

Future prospects

According to analysts from Business Society, the price of mixed xylene rebounded and increased this week, leading to an increase in the cost of adjacent xylene; The price of phthalic anhydride has stopped falling and stabilized, the market for phthalic anhydride is stagnant, and downstream demand for ortho benzene is not growing enough. In the future, the cost of ortho benzene will increase, demand growth will be poor, and the benefits for ortho benzene will be insufficient. It is expected that the price of ortho benzene will stabilize in the future.

On December 13th, the domestic polyester filament market saw a weak adjustment in prices. Mainstream polyester filament factories in Jiangsu and Zhejiang regions showed positive shipping intentions and offered discounts on actual transactions. Among them, the price for polyester POY (150D/48F) ranged from 7350 to 7550 yuan/ton, the price for polyester DTY (150D/48F low elasticity) ranged from 8650 to 9000 yuan/ton, and the price for polyester FDY (150D/96F) ranged from 8100 to 8300 yuan/ton. The trend of raw materials has significantly declined, and downstream companies have a strong cautious attitude. The market transaction atmosphere is exceptionally light, with only sporadic demand as the main focus.

On December 13th, the average price increase and decrease of domestic polyester filament market Unit: yuan/ton

Product/ December 12th/ December 13th/ Up and down/ Year-on-year rise and fall

Polyester DTY/ 8975./8975./0.00%./8.57%

Polyester FDY/ 8274./8254./-0.24%./5.53%

Polyester POY/ 7615./7606./-0.11%./6.44%

On December 12th, international crude oil futures plummeted. The settlement price of the main WTI crude oil futures contract in the United States was $68.61 per barrel, a decrease of $2.71 or 3.8%. The settlement price of Brent crude oil futures main contract was 73.24 yuan/barrel, a decrease of 2.79 US dollars or 3.7%. Oil prices have reached their lowest point in the past six months, mainly due to an unexpected increase in US inflation data, which has lowered market expectations for the Federal Reserve’s interest rate cut early next year, coupled with concerns about oversupply.

PTA followed the decline in crude oil, coupled with the production of Yisheng Hainan’s new unit, Shandong Weilian restarted, and Fuhai Chuang increased its burden. PTA load increased to over 80%. Supply and cost drag, PTA fluctuates weakly. As of December 13th, the spot price of PTA in the East China region was 5657 yuan/ton, a decrease of 1.24% from the previous day.

Entering December, terminal demand has significantly weakened, orders have decreased, and the winter replenishment market is coming to an end. Recently, the shipment speed of autumn and winter fabrics has slowed down compared to the previous period, and downstream factories have relatively poor enthusiasm for stocking raw materials, which has dragged down the price of polyester filament. The downstream has a bearish attitude and the raw materials have not been digested, so the procurement of polyester filament is mainly based on rigid demand.

Analysts from Business Society believe that the increase in PTA for raw materials will lead to new investment and restart pressures in the future. The shortage of spot goods may ease, and the cost side will once again be under pressure. The downstream off-season has obvious characteristics, making it difficult to maintain the demand for polyester filament. The upstream and downstream are bearish, and it is expected that the price of polyester filament will continue to be weak.

Recently (12.1-12.12), the dichloromethane market has experienced a decline followed by an increase, with an overall decline. According to the commodity market analysis system of Shengyishe, as of December 12th, the average price of dichloromethane bulk water in Shandong Province was 2425 yuan/ton, a decrease of 3.19% from 2505 yuan/ton at the beginning of the month, and the low point in the cycle was 2370 yuan/ton. The prices of raw materials methanol and liquid chlorine have decreased, and the cost center of dichloromethane has shifted downwards; After downstream and terminal stocking operations last weekend, the current inventory of enterprises is low, and some domestic enterprises have raised the factory price of dichloromethane. As of December 12th, the mainstream factory price of dichloromethane in Shandong region is around 2400-2500 yuan/ton.

Recently (12.1-12.12), domestic methane chloride production has fluctuated narrowly.

Recently (12.1-12.12), the prices of raw materials methanol and liquid chlorine have decreased, and the cost center of dichloromethane has decreased. According to the commodity market analysis system of Shengyishe, as of December 12th, the spot price of methanol was 2450 yuan/ton, a decrease of 2.20% from the beginning of the month’s 2505 yuan/ton. As of December 12th, the acceptance price of liquid chlorine tank trucks in Shandong region is around 200 yuan/ton, which continues to decline compared to the previous period.

The overall supply of methane chloride in China is stable, with some inventory in the Shandong region on weekends. Currently, enterprise inventories are at a low level, and the factory price of dichloromethane has slightly increased. After a wave of stocking, the overall market demand has weakened again, and the price of dichloromethane fluctuates narrowly.

Market forecast: According to the methane chloride data analyst from Business Society, the demand for dichloromethane is weak in the short term, while the supply is relatively loose, which has a bearish impact on the dichloromethane market. In addition, the lower raw material prices have weakened the cost support for dichloromethane, and it is expected that the dichloromethane market will be weak and consolidate in the later period.

1、 Price trend

According to the Commodity Analysis System of Business Society, the domestic market price of new pentanediol has slightly declined this week. This week, the average price of new pentanediol in the mainstream domestic market dropped from 9725.00 yuan/ton at the beginning of the week to 9650.00 yuan/ton over the weekend, a decrease of 0.77%. The weekend price increased by 7.62% year-on-year. On December 10th, the new pentanediol commodity index was 46.51, unchanged from yesterday, a decrease of 55.11% from the highest point in the cycle of 103.61 points (2021-09-22), and an increase of 8.04% from the lowest point of 43.05 points on November 28th, 2022. (Note: The cycle refers to the period from September 1, 2021 to present)

2、 Market analysis

The mainstream market price of new pentanediol has slightly declined this week.

From the upstream raw material market of neopentyl glycol, the price of isobutyraldehyde in the domestic market has slightly increased this week. This week, the average price of isobutyraldehyde in the mainstream domestic market increased from 7466.67 yuan/ton at the beginning of the week to 7833.33 yuan/ton over the weekend, an increase of 4.91%, and the weekend price increased by 26.01% year-on-year. The upstream raw material market prices have slightly increased, with good cost support. However, due to the impact of supply and demand, it has a positive impact on the price of new pentanediol.

3、 Future prospects

In mid to late December, the trend of the new pentanediol market may fluctuate slightly and rise mainly. The upstream isobutyraldehyde market has slightly increased, with good cost support. The downstream paint market is average, and downstream procurement enthusiasm is average. Business Society’s new pentanediol analyst believes that in the short term, the market for new pentanediol may experience slight fluctuations and increases due to various factors such as supply and demand and raw materials.